Core Viewpoint - Cousins Properties has announced a $250 million share repurchase program, which will be funded through various means including asset sales and retained cash [1] Group 1: Share Repurchase Program - The Board of Directors has authorized the repurchase of up to $250 million of outstanding common shares [1] - The program will be funded through proceeds from non-core asset sales, retained cash, debt financing, and/or settlement of common shares previously issued [1] - Purchases will occur in the open market, privately negotiated transactions, or other legal manners, with no expiration date for the program [1] Group 2: Company Overview - Cousins Properties is a fully integrated, self-administered, and self-managed real estate investment trust (REIT) based in Atlanta, GA [1] - The company primarily invests in Class A office buildings located in high growth Sun Belt markets [1] - Founded in 1958, Cousins focuses on creating shareholder value through expertise in development, acquisition, leasing, and management of high-quality real estate assets [1]

Cousins Properties Incorporated (NYSE:CUZ) is included in our list of Real Estate Investing for Beginners: 10 Best Stocks to Buy. Evercore ISI Raises its Price Target on Cousins Properties Incorporated (CUZ) to $32 and Keeps an Outperform Rating On February 6, 2026, Evercore ISI raised its price target on Cousins Properties Incorporated (NYSE:CUZ) to $32 from $30 previously and kept an Outperform rating. In a post-earnings note, the analyst said FFO guidance carries “upward bias,” pointing to improving t ...

Core Viewpoint - Cousins Properties (CUZ) has experienced a significant decline of 19% over the past four weeks, but it is now positioned for a potential trend reversal as it is in oversold territory, with analysts expecting better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - CUZ has an RSI reading of 22.72, suggesting that the heavy selling pressure may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for CUZ will improve, leading to a 0.3% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - CUZ holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Viewpoint - Commercial real estate stocks have experienced significant declines due to concerns about reduced demand for office space stemming from the increased use of artificial intelligence tools [1][4]. Group 1: Stock Performance - CBRE Group Inc. shares fell 8.8%, marking a two-day decline of 20%, the worst since 2020 [1]. - Other notable declines include Jones Lang LaSalle Inc. down 7.6%, Cushman & Wakefield Ltd. down 12%, and Newmark Group Inc. down 4.2% [1]. - An index tracking office real estate companies retreated by 4.2%, with major decliners including SL Green Realty Corp., Cousins Properties Inc., Kilroy Realty Corp., and BXP Inc. [2]. Group 2: Market Sentiment - Concerns regarding AI's impact on office space demand have been present for some time, but recent selloffs have intensified [2]. - Analysts describe the current market environment as a "ready fire aim" scenario, where investors react sharply to even minor earnings misses due to fears of AI disruption [3]. - The selloff is part of a broader trend referred to as the "AI scare trade," affecting various sectors including software, private credit, and logistics [3][4]. Group 3: Analyst Insights - Analysts have noted that the market is pricing in potential mass job losses in office-using sectors due to AI advancements [4]. - Some analysts caution that the recent steep selling may be an overreaction and could be misjudging the actual risks involved [5].

Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and maximize their stock market investments [1] Group 1: Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank [2] - Stocks are assigned ratings from A to F, with A indicating the highest potential for outperforming the market [3] - The Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Group 2: Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.83% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Group 3: Stock Highlight - Cousins Properties - Cousins Properties Incorporated is a real estate investment trust (REIT) focused on Class A office and mixed-use properties in the Sunbelt markets [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [11] - Cousins Properties has a forward P/E ratio of 7.89 and a recent earnings estimate increase, making it attractive for value investors [12]

Core Viewpoint - Cousins Properties (CUZ) is experiencing significant selling pressure, with a 13.1% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by positive earnings forecasts from Wall Street analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling oversold conditions [2]. - CUZ has an RSI reading of 28.37, suggesting that the heavy selling may be exhausting itself, indicating a potential bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts to raise earnings estimates for CUZ, with a 0.3% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - CUZ holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8].

Core Viewpoint - Cousins Properties (CUZ) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock valuation [1][4]. - A change in a company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][5]. Cousins Properties Specifics - For Cousins Properties, the Zacks Consensus Estimate for the fiscal year ending December 2026 is projected at $2.93 per share, showing no year-over-year change, but estimates have increased by 1% over the past three months [8]. - The upgrade to Zacks Rank 2 places Cousins Properties in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for stock price movement in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, indicating a robust earnings estimate revision feature [9][10].

Financial Data and Key Metrics Changes - The company reported $0.71 per share in FFO for Q4 2025, aligning with consensus expectations, and $2.84 per share for the full year, reflecting a 5.6% growth over 2024 [5] - The portfolio was 88.3% occupied at the end of the quarter, with a goal to achieve 90% occupancy by year-end 2026 [9][10] - 2026 FFO guidance was introduced at $2.92 per share, implying a 2.8% growth over 2025, marking the third consecutive year of FFO growth [11][12] Business Line Data and Key Metrics Changes - The company completed 700,000 sq ft of leases in Q4, the second-highest quarterly volume in four years, with 70% of this being new and expansion leases [14] - Average net rent for the quarter was $36.52, with leasing concessions at $10.58, resulting in an average net effective rent of $23.18 [14] - Cash rents increased by 0.2% overall, but excluding Northpark, they rose by 10.4% [15] Market Data and Key Metrics Changes - Atlanta saw a 5.8% increase in leasing volume quarter-over-quarter, with the company signing 361,000 sq ft of leases, the highest since Q1 2019 [16] - In Austin, leasing activity reached its highest level since 2021, with 98,000 sq ft signed in Q4 [17] - Charlotte experienced a 72% year-over-year increase in leasing activity, with three-quarters being new and expansion leases [17][18] Company Strategy and Development Direction - The company aims to grow occupancy and execute additional accretive investment opportunities, focusing on lifestyle office properties in target Sunbelt markets [9][10] - The acquisition of 300 South Tryon for $317 million is a strategic move to enhance the portfolio in a high-demand area [22][23] - The company plans to remain agile in acquisitions and dispositions, prioritizing earnings accretion while maintaining financial strength [10][24] Management's Comments on Operating Environment and Future Outlook - Management noted that office fundamentals are improving, with demand growing and vacancy rates declining as remote work phases out [6][7] - The company anticipates a significant shortage of high-quality office space by 2028-2030, positioning itself to capitalize on this trend [8][11] - Despite concerns about a slowing labor market, management believes demand for office space is accelerating due to return-to-office mandates [8][12] Other Important Information - The company is under contract to sell Harborview Plaza for $39.5 million and a land parcel in Charlotte for $23.7 million, indicating a strategy to rotate into higher-quality assets [25][26] - Neuhoff, a mixed-use development project in Nashville, is progressing well, with the apartment component reaching over 90% leased [28] Q&A Session Summary Question: Can you talk about which markets are most supportive of development from a yield perspective? - Management indicated that Uptown Dallas, Charlotte, and Buckhead are markets with strong potential for new development due to tight conditions and rising rents [36] Question: Can you provide insights on the late-stage leasing pipeline and rent spreads? - Management confirmed visibility into the late-stage pipeline, expecting continued positive cash rent roll-ups [38][39] Question: How are you thinking about funding the 300 South Tryon acquisition? - Management highlighted the flexibility in funding options, balancing financial and strategic aspects, with a focus on dispositions that yield comparable returns [40][41] Question: What is the expected tenant retention rate and how many leases are signed but not yet commenced? - Management expects a retention rate around 50% and noted that approximately 460,000 sq ft of leases signed in Q4 will commence in 2026 [68][69] Question: How is the demand for office space evolving in your markets? - Management observed significant activity from West Coast and New York companies, particularly in Austin and Charlotte, indicating a robust demand environment [45]

Financial Data and Key Metrics Changes - The company reported $0.71 per share in FFO for Q4 2025, aligning with consensus expectations, and $2.84 per share for the full year, reflecting a 5.6% increase over 2024 [5] - The portfolio was 88.3% occupied at the end of Q4 2025, with a goal to achieve 90% occupancy by year-end 2026 [9][13] - The company introduced 2026 FFO guidance of $2.92 per share at the midpoint, implying a 2.8% growth over 2025 [11][31] Business Line Data and Key Metrics Changes - Leasing activity was strong, with 700,000 sq ft of leases completed in Q4, marking the second-highest quarterly volume in four years [5][14] - Average net rent for Q4 was $36.52, with leasing concessions at $10.58, resulting in an average net effective rent of $23.18 [14] - Excluding Northpark, cash rents increased by 10.4%, while total cash rents increased by only 0.2% [15] Market Data and Key Metrics Changes - In Atlanta, leasing volume increased by 5.8% quarter-over-quarter, with 361,000 sq ft of leases signed in Q4, the highest since Q1 2019 [16] - Austin's market saw significant leasing activity, with 1.3 million sq ft leased in Q4, the highest since 2021, driven by technology companies [17] - Charlotte experienced a 72% year-over-year increase in leasing activity, with three-quarters being new and expansion leases [17][18] Company Strategy and Development Direction - The company aims to grow occupancy and execute additional accretive investment opportunities, focusing on lifestyle office properties in target Sunbelt markets [9][10] - The acquisition of 300 South Tryon for $317 million is a strategic move to enhance the portfolio in a high-demand area [22][23] - The company plans to remain agile in acquisitions and dispositions, prioritizing earnings accretion while maintaining financial strength [10][24] Management's Comments on Operating Environment and Future Outlook - Management noted that demand for office space is accelerating, with a significant shortage expected in 2028-2030 due to low new supply [7][12] - The return-to-office trend is expected to continue driving demand, despite concerns about a slowing labor market [8][12] - The company remains optimistic about 2026, anticipating another busy investment year and continued robust leasing activity [28][29] Other Important Information - The company recognized impairments on two non-core assets during Q4, but these do not impact NAREIT-defined FFO [30] - The company is under contract to sell Harbourview Plaza for $39.5 million and a land parcel in Charlotte for $23.7 million [25][27] Q&A Session Summary Question: Can you talk about which markets are most supportive of development from a yield perspective? - Management indicated that Uptown Dallas, Charlotte, and Buckhead are markets with strong potential for development due to tight conditions and rising rents [36] Question: Can you provide insights on the late-stage leasing pipeline and rent spreads? - Management confirmed visibility into the late-stage pipeline, expecting continued positive cash rent roll-ups [38][39] Question: How are you thinking about funding the 300 South Tryon acquisition? - Management highlighted a low-leverage balance sheet providing flexibility in funding options, balancing financial and strategic aspects [40] Question: What are the underwriting criteria for new developments? - Management targets a pre-lease basis of around 50% and development yields of 8.5%-9% [44] Question: Can you discuss the leasing activity from West Coast and New York companies? - Significant activity was noted in Austin and Charlotte, particularly from technology and financial services firms [45] Question: What is the outlook for occupancy and tenant retention? - Management expects a retention rate around 50% and noted that many leases signed in Q4 will commence in 2026, impacting occupancy positively [68]

Financial Data and Key Metrics Changes - The company reported $0.71 per share in FFO for Q4 2025, aligning with consensus expectations, and $2.84 per share for the full year, reflecting a 5.6% growth over 2024 [4] - The company introduced 2026 FFO guidance of $2.92 per share at the midpoint, implying a 2.8% growth over 2025, marking the third consecutive year of FFO growth [10][30] Business Line Data and Key Metrics Changes - The total office portfolio's end-of-period leased and weighted average occupancy percentages were 90.7% and 88.3% respectively, with occupancy flat sequentially [12] - Leasing volume in Q4 was strong, with 39 office leases totaling 700,000 sq ft, marking the second highest quarterly volume in the past four years [13] - Average net rent for the quarter was $36.52, with leasing concessions above trend at $10.58, resulting in a lower average net effective rent of $23.18 [14] Market Data and Key Metrics Changes - In Atlanta, leasing volume increased by 5.8% quarter-over-quarter, with the company signing 361,000 sq ft of leases, the highest quarterly volume since Q1 2019 [16] - The Austin market saw positive absorption, with 1.3 million sq ft of leasing activity in Q4, the highest since 2021, driven by technology companies [17] - Charlotte's leasing activity increased 72% year-over-year, with three-quarters of that being new and expansion leasing [18] Company Strategy and Development Direction - The company aims to grow occupancy to 90% or higher by year-end 2026, with a late-stage leasing pipeline totaling over 1.1 million sq ft [8] - The core strategy remains to invest in properties that can be repositioned into lifestyle office spaces in target Sunbelt markets [9] - The company plans to remain agile and opportunistic with acquisitions and dispositions, prioritizing earnings accretion while maintaining financial strength [10] Management's Comments on Operating Environment and Future Outlook - Management noted that office fundamentals are improving, with demand growing and vacancy declining, particularly as major companies phase out remote work [5] - The company sees a robust leasing pipeline, particularly from West Coast and New York City-based companies, indicating a shift away from high-tax states [6] - Management expressed optimism about the future, citing a strong balance sheet and the potential for significant rent growth due to a shortage of high-quality office space [11] Other Important Information - The company acquired 300 South Tryon for $317 million, a strategic addition to its portfolio in Charlotte [24] - The company is under contract to sell Harborview Plaza for $39.5 million and a land parcel in Charlotte for $23.7 million, as part of its strategy to rotate into higher-quality assets [25][26] Q&A Session Summary Question: Can you talk about which markets are most supportive of development from a yield perspective? - Management indicated that Uptown Dallas and Charlotte are promising markets for development, with a focus on identifying opportunities by year-end [35] Question: Can you provide insights on the late-stage leasing pipeline and rent spreads? - Management confirmed visibility into the late-stage pipeline, expecting continued positive cash rent roll-up [37][38] Question: How are you thinking about funding the 300 South Tryon acquisition? - Management highlighted the flexibility in funding options, balancing financial and strategic aspects, with a focus on dispositions that yield comparable returns [39][40] Question: What are the underwriting criteria for new developments? - Management targets a pre-lease basis of around 50% and development yields of 150-200 basis points higher than stabilized cap rates [43] Question: Can you provide an update on leasing activity in Atlanta? - Management noted strong leasing activity across various sectors in Atlanta, with a diversified demand mix [64]